TMI Blog2022 (7) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. Standing Counsel. Respondent Through: Mr. Gautam Jain, Advocate with Mr.Piyush Kumar Kamal, Advocate. J U D G M E N T MANMEET PRITAM SINGH ARORA, J (Oral): CM APPL.29956/2022 (condonation of delay) For the averments made in the application, the delay of 177 days in filing the present appeal is condoned. Accordingly, the application stands disposed of. ITA 189/2022 1. The present Income Tax appeal arises out of common impugned order dated 6th October, 2020 passed by the Income Tax Appellate Tribunal (hereinafter referred to as the ITAT ) in ITA No. 6181/Del/2018 for assessment year 2010-11. 2. The facts giving rise to the present appeal are that the Investigation Wing of the Income Tax Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Being aggrieved by the same, an appeal was filed by the assessee before the Commissioner of Income Tax (Appeals) [hereinafter referred to as CIT(A) ]. It is stated by the counsel for the appellant that, vide order dated 17th July, 2018, the CIT(A) allowed the appeal of the assessee, deleted additions and held that in the absence of any incriminating material, the Assessing Officer cannot re-apprise and review already completed assessment and settled issues before the date of search under Section 153A of the Act. 5. The department preferred an appeal before the ITAT which was dismissed vide an order dated 6th October, 2020. 6. The ITAT concluded that the additions made by the Assessing Officer for the assessment year under conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not be considered as an incriminating material, as it merely reflected the date, name of the transferor and transferee as well as the number of the shares. The documents did not record any unexplained investment made by the assessee. The ITAT concluded that no material was found during the course of search so as to indicate any unaccounted investment made by the assessee. The ITAT, therefore, determined that the Assessing Officer made the additions of the unaccounted investment merely on the basis of presumptions. The ITAT while dismissing the appeal observed that in the group cases of ACIT vs. Madho Gopal Agarwal in ITA No. 6184/Del/2018 and ACIT vs. M/s Kapis Impex LLP in ITA No. 6180/Del/2018 the department s appeal had been dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made in the assessment under Sections 153A and 153C of the Act. The legal position summarized in the subsequent decision of Meeta Gutgutia (supra) is reproduced hereinbelow:- 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 12. Though the judgment in Kabul Chawla (supra) has been challenged in connected matters and is pending before the Supreme Court, yet there i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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